Reply #2: daily dollar watch [View All]

[UpInArms]

http://quotes.ino.com/chart/?s=NYBOT_DXY0

Last trade 82.28 Change -0.22 (-0.27%)

http://futures.fxstreet.com/Futures/news/afx/singleNew.asp?menu=economicnews&pv_noticia=MTFH29593_2004-12-17_12-58-09_L17284281

FOREX-Dollar slips as German Ifo data spurs euro

excerpt:

The dollar had a volatile session on Thursday. It came within half a cent of last week's record low against the euro before rebounding on the back of upbeat U.S. economic data.

A smaller than expected U.S. current account deficit for the third quarter, a strong survey of mid-Atlantic manufacturing and a steep drop in U.S. jobless claims encouraged traders to snap up the currency at cheap levels.

The U.S. current account deficit widened to $164.71 billion in the third quarter, a record but below forecasts for $166 billion.

The dollar was also helped by pledges from U.S. President George W. Bush to cut the fiscal deficit. But traders are sceptical given the Bush administration's goal to make tax cuts permanent.

Bush cited the Federal Reserve's interest rate rises as part of U.S. action on the dollar, though so far the rise in U.S. rates over European and Japanese counterparts has offered little solace to the U.S. currency.

The trade shortfall still runs at a historically large 5.6 percent of the total U.S. economy, and most analysts believe that worries about the United States' ability to finance it are likely to keep the dollar under selling pressure.

But with year-end holidays approaching and little significant economic data on the near-term horizon, the market is starting to settle into a lull until the new year.

After a two-day meeting, the Bank of Japan kept unchanged its ultra-easy monetary policy but downgraded its view of production, citing inventory adjustments in the information technology sector. But the central bank said it expected Japan's recovery to continue.

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